Victory Giant surges in debut after biggest Hong Kong listing this year

[HONG KONG] Victory Giant Technology Huizhou, a Chinese supplier of Nvidia, surged 57 per cent in its Hong Kong trading debut after raising US$2.6 billion in the city’s largest listing in seven months.

The shares rose to HK$330 at the start of trading, compared with a listing price of HK$209.88 each. The listing priced at the maximum and attracted thirty-seven cornerstone investors, which get guaranteed allocation in exchange for holding the shares for at least six months, buying about US$997 million worth of stock. The stock jumped 74 per cent in grey-market trading before the debut.

The share sale, Hong Kong’s biggest since Zijin Gold International’s US$3.7 billion offering in September, has kicked off what bankers in the city hope to become a procession of heavyweight deals. Victory Giant joins a wave of Chinese listings in the artificial intelligence space, a popular trade again against the backdrop of the volatile Middle East situation. The company makes printed circuit boards (PCBs), which form the intricate electronic backbone of AI servers.

“It’s not just about investors buying into China’s hard tech, it all comes down to fundamentals,” said Kenny Ng, a strategist at China Everbright Securities International. “Thanks to the AI boom, demand and growth for PCBs are incredibly strong right now, which directly boosts the valuation. Ultimately, it’s the huge upside of the AI hardware sector that’s really driving the price.”

Cornerstone investors included Chinese billionaire Jack Ma-backed Yunfeng Capital, Morgan Stanley International, and asset managers Hillhouse Investment and South Korea’s Mirae Asset Securities.

Founded in 2006 by Chen Tao, the Guangzhou-based company is seen as a leader in high-density interconnect and multi-layer PCBs that are crucial for AI chips. The company posted revenue of 19.3 billion yuan (S$3.6 billion) last year, with analysts polled by Bloomberg forecasting a 70 per cent jump in 2026.

“This IPO could be an attractive value growth opportunity, provided there are no further export controls from the US side,” said Gerald Gan, chief investment officer at Reed Capital Partners. The company can use the proceeds “to grow its market share in the ASICs market, though it needs to compete with existing suppliers from Taiwan and Japan”.

The shares of Delton Technology Guangzhou, another Chinese maker of circuit boards, have gained 109 per cent since their Hong Kong debut a month ago.

Citigroup analysts led by Karen Huang maintains a buy recommendation for Victory Giant, valuing the Shenzhen-listed shares at 20 times 2027 earnings with a price target of 415 yuan, citing robust growth driven by AI-related PCB demand, upside to average selling prices, and potential opportunities in data centre switches and ASICs.

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The listing price represents a discount of about 47 per cent to Victory Giant’s closing price on Monday (Apr 20) in Shenzhen, where they closed at 343 yuan. The fervour for AI has driven the stock up more than fourfold over the past year. Double-listed firms typically trade at a discount in Hong Kong to their onshore prices.

Victory Giant said that it plans to use proceeds from the listing to expand production capacity on the mainland. JPMorgan Chase, China Securities International and GF Securities are joint sponsors of the offering. BLOOMBERG